1. Technical Field
The present disclosure generally relates to collection systems and methods for operating such systems. More particularly, the present disclosure relates to methods and systems for providing an automated virtual collection center that uses a plurality of communication channels to contact individuals.
2. Background
Debt collection balances have grown dramatically over the past decade. Consumer loan debt now exceeds 2 trillion dollars with over 100 billion dollars in a collection status. The billion dollar loan collection outstandings exclude other collection debt balances such as medical, utilities, services and many bill pay obligations. Small business debt is also growing rapidly as lenders seek new market opportunities.
When a consumer is unable to make payments a debt issuer, such as a bank that issues credit, will seek to obtain payment for the outstanding balance. In some cases, the debt issuer employs an internal debt collection unit. The debt collection unit typically uses an automated or live calling program that attempts to contact the consumer via a telephone service. The debt collection unit could also seek to contact the individual via other communication methods, primarily through direct mail and phone messages. Other issuers contract with a debt collection agency that performs similar operations.
Often, the debt collection unit or agency is unable to directly contact the debtor because of an increased use of call screening devices, such as caller identification coupled with answering machines and phone privacy guard services. As such, debtors have reduced the ability of the debt collection unit to directly contact the debtors to resolve the debt. In addition, increased cell phone usage has further reduced Right Party Contacts (RPCs). As such, the use of conventional debt collection systems have resulted in increasing costs and decreased return on investment over time, due to the heavy reliance on human intervention to drive RPCs.
Other communication channels used to contact debtors can face similar issues. For example, a debtor might not respond to a mailing sent to the debtor's address resulting in the creditor expending the cost of sending the mailing to the debtor without any return. Alternately, an email may be sent to a debtor. While email is a low cost vehicle for contacting an individual, the debtor can easily ignore or forget to respond to the email. Moreover, a debtor could easily supply a false email address or the email address could have changed after the debtor registered with the issuer. Both direct mail and email contacts require set up time and costs. As such, at least when initiated, such contact methods take more time to produce than an outbound call.